Tips on Financially Surviving COVID-19

This activity is meant to be verbally shared but can also be completed as a journal activity. At the end of each day, highlight three moments across the day that went well. These can be the tiniest micro-moments or larger happenings. Share these with a family member or via text message with someone you love. You can also write them in a TGT journal. Reflecting on why you think they happened and how you might increase the likelihood of them happening again in the future is also very beneficial. This simple sharing activity builds not only gratitude but also happiness and resilience.  

The world seems to have turned upside down with people feeling anxious and out of control. This is understandable, so take a breath and use this time when you are working from home and self-quarantining to do a couple of things with your finances during these crazy times. 

Tip 1: Bare Bones Challenge

Challenge yourself for the next week or month to a ‘bare bones spend’ which focuses on essentials only.  We need to pay for food, transport and housing, but this is the perfect time, when we aren’t going out as much, to take on this challenge.  Put the money you aren’t spending aside in a completely different account. We all love a challenge and you’ll be surprised how much you save.

Tip 2: Your Spending Plan

I don’t like to call it a budget or cashflow as it conjures up images of going without. Doing a ‘Spending Plan’ allows you to set aside money for fun and living. Get your numbers down on paper using an App or a spreadsheet (www.moneysmart.gov.au) to keep track. Split them into ‘Bills’, ‘Food & Fun’ weekly spend and ‘Your Future’.  Set up and name these three accounts, separating your pay each week to them as per your ‘Spending Plan’. Make sure that you automate these transfers so you don’t have to think, preferably direct from your employer.

Tip 3: Talking about Shares

Now is not the time to panic. You haven’t lost money unless you sell so sit tight and weather the storm. Think of it like selling a property. If you are offered thousands of dollars less than you were offered yesterday, would you sell?  No of course not. You would sit and wait for a fair price if you can afford to. Shares are all companies selling things we buy every day and will continue to do so. This crazy time will pass and things will bounce back as they have after every crisis in the past. ­ 

Phil Gard